From the California Business Journal Newswire.
JD.com (NASDAQ: JD), a Chinese e-commerce company headquartered in Beijing, is the world’s third-largest internet company by revenue. It is one of the two massive B2C online retailers in China by transaction volume and revenue, a member of the Fortune Global 500 and a major competitor to Alibaba-run Tmall.
The company has posted wildly-impressive earnings, proving that it is a company that investors should watch closely if they want to understand the regional market and think about expanding their own personal investment portfolio.
The company’s achievements have been bolstered by several important factors including e-commerce growth as well as a beneficial agreement with another industry competitor.
Revenues for the company were up by over 20% when compared to the same period the previous year. With that increase, high-ranking company officials realize how strong the company is and how much potential it has when it comes to meeting and exceeding earnings goals.
With over $120B Chinese yuan in revenues in a single quarter, the company met the expectations that investors and employees hoped for. Many specific factors went into producing these results.
One of the most important factors contributing to such a strong performance was the company’s partnership with Tencent. Such partnerships are the foundation of any business effort.
Tencent offers access to the hugely-important Weixin platform, which serves as JD.com’s foundation for future growth. WeChat is also part of this effort. More than one billion people visit WeChat each month, which translates into more revenue growth for JD.com.
The company recently paid $800M in an undisclosed deal, enabling the company to make best use of its investment capital as it seeks further expansion and growth. In addition, the company agreed to take another $250M in the form of class A shares, giving it a firm foundation in the market and the ability to rise to even greater heights.
Focusing closely on the ability to deliver a trusted online experience will continue to lead to customer satisfaction for JD.com and its partners. Cutting edge innovation is another area where company officials feel they can really make a difference.
The use of an increasingly efficient operation is also another area where officials at the company believe it is possible to create value for shareholders.
Shares listed on the American markets bounced 52% after the announcement in the U.S. This growth is expected to help push the company’s achievements and yearly gains to about a 45% increase.
In addition, company officials also announced that active accounts grew 15% in the last year. This helped them climb over $310M.
Earlier this year, Farfetch Limited (NYSE: FTCH), the leading global technology platform for the luxury fashion industry, launched a flagship store on JD.com, which is a strategic investor in Farfetch.
This follows the acquisition of Toplife by Farfetch China in February.
Farfetch now has a ‘Level 1’ entry point on the JD.com app, providing JD.com’s 300 million customers with instant access to more than 3,000 brands via Farfetch’s network of more than 1,000 luxury brand and boutique partners.
Over the past two years, Farfetch has successfully leveraged JD.com’s logistics capabilities in China, as well as JD.com’s insights into the behaviors of China’s luxury consumers.
“We are delighted to offer JD.com’s customers direct access to the broadest selection of luxury fashion online, and to be able to offer luxury brands the Premier Luxury Gateway to China for executing on their digital strategy in China,” says Judy Liu, Farfetch’s China MD.
“We have been able to do this, in significant part, thanks to the enthusiasm and support from our brand partners. Brands crave ever-better access to the Chinese market, and we are thrilled to deliver this for them.
“This is an important expansion of our strategic partnership with JD.com, which strengthens Farfetch’s China business as part of our truly global offering,” she adds. “Being able to offer the full suite of Farfetch’s technology and logistics platform to brands wanting to reach high-end Chinese consumers is a major competitive advantage as we seek to continue to grow market share in the rapidly expanding online luxury market.”